The University of Alberta has purchased four hybrid electric delivery vans from Azure Dynamics to use for mail deliveries around the campus. The four vehicles will be running a route that includes 100 buildings and 1,000 pickups and deliveries every day. The Balance hybrid from Azure Dynamics uses an electric motor mounted halfway along the drive shaft to provide electric assist, low speed electric only drive and regenerative braking capability. An integrated starter/generator provides automatic start-stop capability to reduce engine idling. A 2.45 kWh nickel metal hydride battery pack provides energy storage for the hybrid system.

Azure builds its hybrid system into vehicles based on the Ford E450 van platform which is used for panel vans like the one shown above, shuttles and cube vans. Normal propulsion is provided by the standard Ford 5.4-liter V8 used across most of Ford's truck line.

Azure Dynamics Balance Hybrid Electric to Deliver Mail at the University of Alberta

OAK PARK, MI, May 13, 2009 -- Azure Dynamics Corporation (TSX: AZD) - ("Azure") or (the "Company"), a leading developer of state-of-the-art green technologies that address environmental and cost issues for the commercial transportation industry, announced today that four Balance(TM) Hybrid Electric trucks were sold to the University of Alberta. The trucks will be predominantly used for campus mail delivery to over 100 buildings with more than 1,000 mail delivery and pickup points daily.

"Azure Dynamics has deep roots in Western Canada, so it is very rewarding to partner with the University of Alberta and provide an environmentally friendly solution for its campus mail service," said Scott Harrison, Azure Dynamics Chief Executive Officer. "In the past two quarters, Azure has shipped over 100 trucks into Canada making it a very significant market for our company."

With its electric-launch assist, engine-off at idle and regenerative braking, the Azure Balance(TM) Hybrid Electric is ideally suited for the tough start and stop conditions endured by mail delivery vehicles. As a result, the University of Alberta can expect considerable benefits in terms of fuel efficiency and maintenance costs while also reducing its carbon foot print and improving its campus air quality.

Freedom Ford, Canada's largest Ford Commercial Dealer located in Edmonton, Alberta acted as the coordinator to deliver these vehicles to the University of Alberta. Joe Holland, Freedom's Commercial Fleet Manager, said, "With environmental stewardship a key priority for Canadian businesses both large and small, Freedom Ford has focused on the supply and delivery of Ford Motor Company hybrid technologies and now has the ability to meet the growing commercial demand by partnering with Azure Dynamics. Azure's Ford E-series hybridization allows for a wide range of creative solutions including cargo and shuttle configurations to provide flexibility without any sacrifice in performance, durability or utility."

"The sales to the University of Alberta are a direct result of Azure's effort to enlist a regional dealership network," said Jay Sandler, Azure Dynamics Vice President of Sales. "We already have more than 25 dealers in major markets like Miami, Boston, San Antonio, Los Angeles, Minneapolis, Toronto and others. These dealers are telling us that their commercial truck customers are increasingly interested in hybrid vehicle solutions that improve fuel economy and lower maintenance costs. Our Balance(TM) Hybrid Electric product addresses these needs. We expect our dealer partners to continue to bring us new customers like Freedom Ford did with University of Alberta."

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